San Francisco was competing fiercely to host the site in recent weeks, even sending letters to Lucas from neighbors who had previously raised concerns about development in the proposed area near the waterfront.

Los Angeles was also courting the movie mogul, but it appears Chicago's lakefront museum campus will be home to the massive interactive museum. Lucas' decision was first reported by the Chicago Sun-Times.

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San Francisco wanted the museum to be located at Seawall Lot 330, a plot of land on the Embarcadero across from Piers 30-32. Nearly every San Francisco mayor of the past four decades also sent Lucas letters last week.

Earlier, the Presidio Trust rejected Lucas' proposal to locate the museum at the Crissy Field site in San Francisco now occupied by a Sports Basement store.